Explore BrainMass

Mortgages, interest, accounts payable, and stocks

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1) Kananga Company has these obligations at December 31:
(a) A note payable for $100,000 due in 2 years,
(b) A 10-year mortgage payable of $200,000 payable in ten $20,000 annual payments,
(c) Interest payable of $15,000 on the mortgage,
(d) Accounts payable of $60,000.
For each obligation, indicate whether it should be classified as a current liability if not why?

2) Refer to the financial statements of Tootsie Roll Industries and the Notes to Consolidated Financial Statements in Appendix A. Instructions Answer the following questions.
(a) What were Tootsie Roll's total current liabilities at December 31, 2004? What was the increase/decrease in Tootsie Roll's total current liabilities from the prior year?
(b) How much were the accounts payable at December 31, 2004?
(c) What were the components of total current liabilities on December 31, 2004 (other than accounts payable already discussed above)? See attachment

3) Chapter 11: Ethics Case: BYP11-10
BYP11-10 Greenwood Corporation has paid 60 consecutive quarterly cash dividends (15 years). The last 6 months have been a real cash drain on the company, however, as profit margins have been greatly narrowed by increasing competition. With a cash balance sufficient to meet only day-to-day operating needs, the president, Gil Mailor, has decided that a stock dividend instead of a cash dividend should be declared. He tells Greenwood's financial vice-president, Vicki Lemke, to issue a press release stating that the company is extending its consecutive dividend record with the issuance of a 5% stock dividend. "Write the press release convincing the stockholders that the stock dividend is just as good as a cash dividend," he orders. "Just watch our stock rise when we announce the stock dividend; it must be a good thing if that happens."
(a) Who are the stakeholders in this situation?
(b) Is there anything unethical about president Mailor's intentions or actions?
(c) What is the effect of a stock dividend on a corporation's stockholders' equity accounts?
Which would you rather receive as a stockholder?a cash dividend or a stock dividend?
4) Valentin Zukovsky says that liquidity and solvency is the same thing. Is he correct? If not, how do they differ?
5) Chapter 11: Internet Assignment 11-1 www.staples.com
Locate the company's most current balance sheet by selecting Corporate Information. Instructions
Answer the following questions:
a. Does the company report preferred stock in its balance sheet? If so, how many shares are currently outstanding?
b. How much common stock does the company report in its most recent balance sheet? What is the par value of each?
c. Does the company report any treasury stock? Has this amount changed since the previous year?

© BrainMass Inc. brainmass.com October 24, 2018, 10:31 pm ad1c9bdddf


Solution Summary

This solution provides explanations for various questions involving mortgages, interest, accounts payable, and stocks.

See Also This Related BrainMass Solution

Classified Balance Sheet to Determine Payable Mortgage

I have started a classified balance sheet but am stuck. The instructions are to prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in 2008. I am attaching the excel sheet I have prepared on sheet one and the figures that I need to use on sheet 2. I am very stuck and can't see where I have messed up. Please help Thank you.

Building 105,800
A/R 12,600
Prepaid Insurance 4,680
cash 16,840
equipment 82,400
land 61,200
insurance expense 780
depreciation expense 5,300
interest expense 2,600
common stock 62,000
retained earnings (January 1, 2007) 40,000
Accumulated depreciation- Building 45,600
Accounts Payable 9,500
Mortgage Payable 93,600
Accumulated Depreciation-Equipment 18,720
Interest Payable 3,600
Bowling Revenues 19,180

View Full Posting Details